The present invention relates to methods of using a cellular phone or other wireless communication device communicating with a payment processor to initiate, confirm, authorise purchases over the Internet and provide a simple verification of the valid purchase. The purchase cost is debited from the buyer's prepaid account with the utility provider or in the case of non prepaid accounts, accrued as a payable item on their monthly utility statement. This same purchase amount is then credited to the payee's utility account. There is no transfer of funds from any accounts either from a financial institution or otherwise. Merchants receiving payment will have their own utility credits in dollars recorded in their statements and the payer will have the utility debits in dollars recorded for non prepaid accounts to be settled later according to the terms as set by the utility provider. Other terms such as a ceiling of max purchase cost or limit may be set. This invention is primarily designed for small value items.
Prior to the present invention, cellular phones and/or other wireless communication devices have been used in a variety of different procedures involving the transfer of funds between different accounts involving financial institutions and different financial related accounts. These procedures leave something to be desired in that they are unduly complicated and less convenient and/or less secure and costly. Furthermore, some qualification may be required as in a credit card where users must attain certain financial standing to gain access to this facility. In short, this invention is to provide an alternative non-banking solution to making micro payment on the Internet and to increase stakeholders in the e-commerce world by making the process of paying and receiving funds universally available and at a minimum cost.